We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Study identifies attributes of best-in-class procurement organizations
Forward Thinking

Study identifies attributes of best-in-class procurement organizations

November 22, 2011
Supply Chain Quarterly Staff
No Comments

A global procurement study conducted by the consulting firm A.T. Kearney found that top companies manage risk by using risk-impact analysis, financial risk management, and disaster planning to protect against unforeseen threats. Leading procurement organizations, Kearney said, "excel at risk management by anticipating, tracking, and planning mitigation strategies" covering a wide range of threats.

For the study, part of its latest Assessment of Excellence in Procurement report, the consulting firm gathered input from 185 companies across 32 different industries. Eighty percent of the respondent companies said they were vulnerable to a major supply disruption.

As part of the study analysis, Kearney identified 13 of the responding companies that consistently demonstrated a high level of procurement performance. These best-in-class companies had seven practices in common. Besides excelling at risk management, leading companies aligned procurement strategy with the overall goals of the company. They also worked closely with their suppliers to improve new-product development performance, reduced time-to-market for new products, and created new business opportunities to boost revenues. Other leading practices included supplier relationship management processes, tailoring category strategies to particular situations, and "more forward-looking" approaches to recruiting and retaining supply chain talent. They also tended to be more advanced in their adoption of technology.

One other interesting finding was that more than 50 percent of respondents plan to increase their sourcing of products and services from China, India, and other Asian countries over the next three years. Although the study did not specifically ask respondents for an explanation, study author Alejandro Ferrer said his belief was that companies were still expecting a "significant cost differential" if they used other sourcing locations than those Asian regions.

  • Related Articles

    Five things procurement organizations need to improve in 2019

    Best-in-class retailers have greater supply chain visibility than peers

    Study: More than half of warehousing organizations to upgrade mobile devices

Recent Articles by Supply Chain Quarterly Staff

Trucking market slumped under weight of diesel prices in March

Cargo volume stays strong in April

Consumers shrug off inflated prices to drive sales increase in April

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Is it time to blow up S&OP?

  • How to build a supplier diversity program that will drive long-term impact

  • Logistics pros warn of business impact from Russia-Ukraine war

  • Supply chain’s miracle workers

  • Container prices continue to drop

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

  • Fixed vs. Flexible Automation: Which Option is Better for 3PLs?

  • Enhancing Relationships in Logistics through Data & Collaboration

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing